Bill Text: CA SB1062 | 2023-2024 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Conversion of electrical generation facilities using biomass.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2024-08-15 - August 15 hearing: Held in committee and under submission. [SB1062 Detail]

Download: California-2023-SB1062-Amended.html

---

Amended  IN  Assembly  June 24, 2024

Amended  IN  Senate  April 29, 2024

Amended  IN  Senate  April 03, 2024

Amended  IN  Senate  March 20, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 1062

---

Introduced by Senator Dahle
(Coauthor: Assembly Member Wood)

February 08, 2024

---

An act to add Chapter 17 (commencing with Section 25994) to Division 15 of the Public Resources Code, relating to energy.

LEGISLATIVE COUNSEL'S DIGEST

SB 1062, as amended, Dahle. Energy: conversion of biomass energy generation facilities. Electrical generation facilities using biomass: conversion to advanced bioenergy technology facilities.

Existing law establishes the Agricultural Biomass Utilization Account in the Department of Food and Agricultural Fund, which is administered by the Department of Food and Agriculture, in consultation with the State Air Resources Board and the Department of Resources Recycling and Recovery, for purposes of providing grants to persons that use agricultural biomass as a means for avoiding landfill use, preventing air pollution, and enhancing environmental quality.

This bill would require the Department of Conservation Conservation, on or before December 1, 2025, to develop establish and administer the Biomass Technology Transition Program to support the conversion of biomass generation facilities using traditional combustion technologies to newer advanced bioenergy technology facilities that result in reductions in the emissions of criteria pollutants, toxic air contaminants, and greenhouse gases. facilities, as defined. The bill would require the department, on or before December 1, 2025, to identify generation facilities with a generation capacity of 10 megawatts or greater that uses, use, or are in the process of recommissioning or the redevelopment of redeveloping those facilities to use, forest biomass waste, as defined, and the operators of those facilities have demonstrated to the department their sincere interest, to the satisfaction of the department, in converting intent to convert the facilities to advanced bioenergy technologies that result in a reduction in emissions of criteria pollutants, toxic air contaminants, and greenhouse gases. technology facilities. The bill would require the department to request the relevant local air pollution control district or air quality management district to provide information for each identified generation facility about best available control technologies, and other potential advanced emission control technologies applicable to the district, that would be required if the generation facility requests a permit, as provided. The bill would require the department, on or before January 1, 2032, 2030, to establish a grant program to support the distribution of advanced bioenergy technologies from those identified generation facilities that meet certain requirements. conversion of the generation facilities identified pursuant to the above-described provisions to advanced bioenergy technology facilities and would require an operator of a generation facility, in order to receive a grant, to develop and submit to the department business plans meeting specified guidelines. The bill would prohibit actions taken by the department and by operators of generation facilities pursuant to the above-described provisions from being funded by ratepayers.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

---

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Chapter 17 (commencing with Section 25994) is added to Division 15 of the Public Resources Code, to read:

CHAPTER  17. Biomass Technology Transition Program

Article  1. General Provisions

25994.

 Unless the context requires otherwise, for purposes of this chapter, the following definitions apply:

(a) “Advanced bioenergy technology facility” means a noncombustion bioenergy facility that results in reductions in the emissions of criteria pollutants, toxic air contaminants, and greenhouse gases relative to traditional technologies, and may include, but is not limited to, sustainable aviation fuel or other biofuel production, or renewable natural gas or biomass conversion to hydrogen.

(a)

(b) “Department” means the Department of Conservation.

(b)

(c) “District” has the same meaning as set forth in Section 39025 of the Health and Safety Code.

(c)

(d) “Forest biomass waste” means forest biomass that is removed to reduce or mitigate the risk of wildfire, reduce the risk to public safety or infrastructure from falling trees or tree limbs, or create defensible space, or for forest restoration projects.

(d)

(e) “Generation facility” means an electrical generation facility using biomass.

(e)

(f) “Program” means the Biomass Technology Transition Program established pursuant to Section 25994.10.

Article  2. Biomass Technology Transition Program

25994.10.

 (a)The On or before December 1, 2025, the department, in consultation with the commission, the Public Utilities Commission, the State Air Resources Board, the Governor’s Office of Business and Economic Development, the California Infrastructure and Economic Development Bank, and districts, shall establish and administer the Biomass Technology Transition Program with relevant program terms to support the conversion of biomass generation facilities using traditional combustion technologies to newer advanced bioenergy technology facilities that result in reductions in the emissions of criteria pollutants, toxic air contaminants, and greenhouse gases. facilities.

(b)On or before December 1, 2025, the department, in consultation with the commission, the State Air Resources Board, and the Governor’s Office of Business and Economic Development, shall establish relevant program terms for purposes of the program.

25994.11.

 (a) On or before December 1, 2025, the department shall identify generation facilities with a generation capacity of 10 megawatts or greater that use, or are in the process of recommissioning or the redevelopment of redeveloping those facilities to use, forest biomass waste and the operators of those facilities have demonstrated to the department their sincere interest, to the satisfaction of the department, in converting intent to convert their facilities to advanced bioenergy technology facilities that result in a reduction in emissions of criteria pollutants, toxic air contaminants, and greenhouse gases. facilities.

(b) The department shall request the relevant district to provide information for each identified generation facility about best available control technologies, and other potential advanced emission control technologies, as applicable to the district, that would be required if the generation facility requests a permit, which shall be a factor in the consideration of the facility’s participation in the program. permit. As part of the evaluation of the generation facility’s grant application pursuant to Section 25994.14, the department shall consider the upgrades needed by the generation facility to meet the emission limits equivalent to, or more stringent than, the applicable best available control technology, as determined by the district.

25994.12.

 (a) On or before January 1, 2026, for purposes of Section 25994.13, the department, in consultation with the commission, the Public Utilities Commission, the State Air Resources Board, the Governor’s Office of Business and Economic Development, the California Infrastructure and Economic Development Bank, districts, and relevant federal agencies, shall assess market conditions for products from advanced bioenergy technology facilities, including, but not limited to, by estimating feasible market demand and technology readiness.

(b) Beginning January 1, 2030, and every two years thereafter, the department shall update the assessment of market conditions for products from advanced bioenergy production facilities, including, but not limited to, by estimating feasible market demand and technology readiness.

25994.12.25994.13.

 (a) To receive a grant pursuant to Section 25994.13, 25994.14, the operator of a generation facility shall shall, on or before January 1, 2027, develop and submit to the department business plans pursuant to guidelines established by the department. The business plans may include a carbon sequestration component.

(b) The department shall establish guidelines that, at minimum, incorporate all of the following criteria:

(1)(A)On or before January 1, 2030, if the initial market benchmarks are met, as determined by the department, for advanced bioenergy technologies, such as renewable natural gas, hydrogen, or other advanced energy technology development, the operator begins development of business plans to convert to those technologies. Those business plans shall also include a carbon sequestration component. The development of the business plans shall be completed on or before January 1, 2032.

(1) (A) On or before January 1, 2030, if the department estimates feasible market demand and technology readiness, as determined pursuant to subdivision (a) of Section 25994.12, for products from advanced bioenergy technology facilities, the operator of the generation facility shall, within two years of the department’s estimation, begin converting the existing generation facility to an advanced bioenergy technology facility.

(B) On or before January 1, 2033, if the advanced market benchmarks are met, as determined by the department, the generation facility shall convert to an advanced bioenergy technology facility. The department shall may provide assistance through the grant program established pursuant to Section 25994.14 to those converted generation facilities to obtain offtake agreements for new products through the grant program established pursuant to Section 25994.13. products.

(2)(A)If the department determines, on or before January 1, 2030, that the initial benchmarks are not met, the department shall, on or before January 1, 2032, and every two years thereafter, determine if the initial benchmarks are met.

(B)If the department determines that the initial benchmarks are met in a determination required pursuant to subparagraph (A), the operator of the generation facility shall adopt the business plans specified in subparagraph (B) of paragraph (1) within two years of the department’s determination and the generation facility shall convert to an advanced bioenergy technology facility upon a determination by the department that the advanced market benchmarks are met.

(2) After January 1, 2030, if the department determines that feasible market demand and technology readiness is estimated in the updated assessment required pursuant to subdivision (b) of Section 25994.12, the operator of the generation facility shall, within two years of the department’s estimation, begin converting the facility to an advanced bioenergy technology facility.

(3) Ensure the business plans described in this subdivision are consistent, as applicable, with the State Board of Forestry and Fire Protection’s Joint Institute Recommendations to Expand Wood and Biomass Utilization in California approved on November 4, 2020.

(c)For purposes of this section, the department, in consultation with the State Air Resources Board, the Governor’s Office of Business and Economic Development, the California Infrastructure and Economic Development Bank, and relevant federal agencies, shall establish market benchmarks for advanced bioenergy technologies.

25994.13.25994.14.

 On or before January 1, 2032, 2030, the department shall establish a grant program to support the distribution of advanced bioenergy technologies, including, but not limited to, sustainable aviation fuel or other biofuels, linear generators, renewable natural gas or biomass conversion to hydrogen, as determined appropriate by the department, from the conversion of generation facilities identified pursuant to Section 25994.11 and in compliance with Section 25994.12 that result in substantially lower emissions of criteria pollutants, toxic air contaminants, and greenhouse gases. 25994.13 to advanced bioenergy technology facilities. Actions taken by the department and by operators of generation facilities pursuant to this chapter shall not be funded by ratepayers.